Lloyd Electric and Engineering – Wired to grow
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Emerging companies - Mid caps that can become large cap
Forum Discription: These are companies operating in growing markets having have certain niches or specific attributes like new sector plays. These are emerging multibaggers with high risks and high rewards.
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=131
Printed Date: 19/Apr/2025 at 9:25pm
Topic: Lloyd Electric and Engineering – Wired to grow
Posted By: basant
Subject: Lloyd Electric and Engineering – Wired to grow
Date Posted: 09/Aug/2006 at 1:38pm
|
Lloyd Electric and Engineering – Wired to grow Lloyd Electric (CMP Rs 138.00) is engaged into the business of manufacturing heat exchanging coil for air-conditioners. The company has been making supplies to all the major air-conditioner manufacturers in More-over, the company shall be manufacturing heat exchanging coils for refrigerators for which technological know-how is being sourced from a Korean company.
During the quarter ended June 2006 the company’s sales was at Rs 124.50 crores as compared to Rs 352.52 crores for the full year of Fy 06. Profit during the same period increased to Rs 11.42 crore against the full year profit of Rs 28.12 crore in the previous year. Recently there has been a jump in operating margins. This coupled with increased sales led to the growth in profits. This Management attributes this outstanding performance to high levels of productivity and efficiency in overall operations
Clearly the first quarter appears to have been the point of inflexion for Lloyd engineering. In case the company is able to maintain the same growth trajectory (which looks likely) the stock could be seriously re rated from these levels.
Last year (FY 06) the company increased its capacity to manufacture and assemble about 200,000 air conditioners per year. Lloyd’s agreement to contract manufacture air conditioners for Samsung, Electrolux and Carrier shall primarily come from the Kala-Amb (tax haven) plant. The management says that the result from this plant has been “remarkable”.
The manufacturing facility is being further augmented by putting up another plant to assemble 200,000 Air conditioners. Once on stream this facility shall substantially increase revenues and bottom line. A back of the envelope calculation shows that a 100% increase in capacity with assured buyers should raise revenues and the bottom-line by an equal amount. This means that the stocks could also double over the next 24 months.
With increasing disposable income consumer spending on durables like air conditioners and refrigerators is bound to go up. It is therefore up to the management as to how they can scale up their operations to meet to these growing challenges.Read about more the Indian consumer by clicking on the following link. http://www.theequitydesk.com/india_story.asp - http://www.theequitydesk.com/india_story.asp Recommendation: The stock falls into the high risk high return category. Temporarily it can fall very badly in case the markets decide to move south and is suitable for investors who are willing to take a high risk exposure to their portfolio. The present price discounts its estimated Fy 07 EPS by 7 times which makes it a growth cum value play. Nilesh Shah Of prudential ICICI is very bullish on this stock and holds over 15,00,000 shares in the Pru ICICI Emerging STAR fund. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Replies:
Posted By: RITESHKAMANI
Date Posted: 09/Aug/2006 at 11:33am
| CONGRATS...........!FOR N AMAZING PERFORMANCE OF THE STOCK.THE STOCK IS 9%UP.I FEEL SOME VERY SMART PPL R BUYIN RIGHT NOW IN THE MARKET. |
Posted By: chic_1978
Date Posted: 10/Aug/2006 at 4:58pm
|
Few more querries for u guys
Please send ur views for following companies i am invested in
Electrosteel Castings
Lloyd Electric
Ucal Fuels
Prime Property
Energy Developement
Essar Oils
RNRL
RPL
FCS Software
Ashok Leyland
Looking towads reply from Mr Basant
Tnx & Rgds
------------- happy & wise investing |
Posted By: sun_1313
Date Posted: 21/Sep/2006 at 11:18am
|
basantji, the BSE site says net profit of lloyd electric in 06 is 29 crores...your figures are 11 crores....kindly clarify.
thanx a million for creating a beautiful platform for high quality exchange of equity related matters.keep up.
regards.
sun
|
Posted By: basant
Date Posted: 21/Sep/2006 at 11:36am
|
Thank you so much for pointing that out. That was a very critical typo from my side. I had put in the Fy 05 figures instead of Fy 06. APologies to all for that. Thankfully that does not disturb the current picture.The figures have been rectified. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: prosperity
Date Posted: 22/Sep/2006 at 12:04pm
|
Basantji,
Can you pls. compare this to voltas. I believe that these air conditioning companies are at a very high PE, preventing us to enter now - just like your view on entering educomp !
Thanx ------------- |
Posted By: sun_1313
Date Posted: 22/Sep/2006 at 12:36pm
|
amazing speed again basantji...in less than 18 mins you corrected and posted the reply...struck by your commitment sir. regards
sun
|
Posted By: basant
Date Posted: 22/Sep/2006 at 12:38pm
|
Voltas is the largest airconditioning company in India and we cannot compare these two.Yes the PE's at Voltas have gone up so the growth in stock price will come only because of increase in EPS. Voltas is getting into a lot of interesting things like cold storage etc which should help the company maintain its EPS growth. WHile Voltas is good valuations do not permit fresh investments. After the split the stock does look "cheap" but that is just a mirage. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: chic_1978
Date Posted: 25/Sep/2006 at 10:04pm
|
LLoyd Electric and Engineering 1)Business of heat exchangers,AC windows. 2) All OEM Customers including LG,samsung, Blue star,Voltas,carrier,Hitachi,Emerson,Electolux,Whirlpoorl. 3)So whoever sells AC Lloyd is going to benefit. 4)Eps of 10.13 and PE of 12.88 as on 22 september. 5)Dividend of 10%. 6)52 week high 235 and 52 low 103 7)150 day average of 149 and 200 day average of 151 8)Lloyd Electric & Engineering Ltd has entered into a Memorandum of Understanding (MOU) with Air International Transit Pty Ltd (AITPL), an Australian based Company, for the designing, manufacturing and supplying of AC package units to Metro Rail Corporation in India. 9)Four MF hold the stock Pru ICICI Emerging S.T.A.R.(G) Tata Mid Cap Fund (G) Tata Equity Opp. Fund (G) Tata Pure Equity Fund (G) 10)Four Times Expansion plans.Lloyd Electric & Engineering Ltd has increased its capacity for manufacturing air-conditioners from 50,000 units to 2,00,000 units in Kala Amb.Also they will set up additional air-conditioner manufacturing facilities in Dehradoon, Uttaranchal ------------- happy & wise investing |
Posted By: equity analyst
Date Posted: 26/Sep/2006 at 10:02pm
|
JF asset management has acquired 5,35,000 shares through block deal at 138 per share on 18-9-06. ------------- "Markets are the places where two types of people meet up in the morning: those with experience and those with money. Towards the end of the day, they exchange their assets and go home." |
Posted By: basant
Date Posted: 26/Sep/2006 at 10:05pm
|
How much has the equity analyst acquired through open market purchases? ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: equity analyst
Date Posted: 26/Sep/2006 at 10:08pm
|
ha ha .Not much Sir
have bought some more at 135.But still avg is coming near 165.It has gone ex -dividend on 25Th sep. but i am upbeat on this company could surprise us on upsides. ------------- "Markets are the places where two types of people meet up in the morning: those with experience and those with money. Towards the end of the day, they exchange their assets and go home." |
Posted By: vivekkumar_in
Date Posted: 03/Oct/2006 at 12:13pm
|
Hi Basantji, Can you compare Lloyd with Bluestar. With Retail spaces , Malls & Multiplexes expanding & consumer spending increasing centralized Air conditioning would be growth area. Do you think Lloyd can become a significant player in that field ? Regards, Vivek ------------- Often we forget there's a company behind every stock,and there's only one reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies. P Lynch |
Posted By: basant
Date Posted: 03/Oct/2006 at 10:05am
|
Blue Star is a phenomenal concept. Given a choice I would prefer Blue Star almost all the malls use its centralised AC systems. The growth in malls/restaurants/multiplexes/offices over the next 3-4 years is surely going to create tremendous demand for the company's products. No doubt on that. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: kulman
Date Posted: 03/Oct/2006 at 11:13am
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: vivekkumar_in
Date Posted: 04/Oct/2006 at 10:31pm
|
Basantji, Can you please perform a study and publish for us Bluestar. It is a Retail Boom - Consumer Durables Story.. Regards, Vivek ------------- Often we forget there's a company behind every stock,and there's only one reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies. P Lynch |
Posted By: investor
Date Posted: 04/Oct/2006 at 10:06am
|
Hi Basant, Bluestar is another stock that has been on my watchlist for quite some time now, but i have never entered it, coz i dont know much about its business story and potential. Would it be possible for you to do an analysis on it, whenever you have the time? Thanks. |
Posted By: basant
Date Posted: 04/Oct/2006 at 11:10am
|
Yes I would it is a great play as I mentiuoned elsewhere. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: sun_1313
Date Posted: 05/Oct/2006 at 6:03pm
|
basantji,
what, in your view, is the correct valuation of this co in terms of PE value?
at the currect PE of 6 times 07,is the stock very cheap compared to its peers?
what is the PE this sector usually gets?
last year, in Q1, the co has reported an EPS of 4.75, against an EPS of 4.23 this year, but with a much lower sales.
i cant understand what this means.
kindly explain sir.... i am considering to buy around 1000 shares.is bluestar a better bet?
regards,sun
|
Posted By: basant
Date Posted: 05/Oct/2006 at 6:41pm
|
ALthough Lloyd appears cheaper Blue Star is better. Shall try and get a write up on BlueStar very soon. Cannot compare the two,Bluestar has a 4 year growth history Lloyd is just getting its act together; Lloyd could double in oine year but Blue star is a stable company that would grow 20% - 25% each year. So it is difficult to compare the two really.
But if you ant some stability buy Blue Star if you want some action then Lloyd is a better bet as it could move fast. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: sun_1313
Date Posted: 05/Oct/2006 at 9:38pm
|
thanks a lot basantji.
my qn is, for a beginner like me,the Q1 of this year for lloyd looks worse than the Q1 of last year(the EPS)...but you say this is the inflexion point....i cant get your point.
sorry if the qn is silly, but i dont understand(kindly pardon if im ignorant)
|
Posted By: kulman
Date Posted: 05/Oct/2006 at 9:45pm
|
Could someone please let me know the website address for Lloyd Electric & Engg? ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 05/Oct/2006 at 9:46pm
|
Ha ha ha. We are all beginers in this "game" and any one who thinks that he is a master may better get ready to become a slave! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: sun_1313
Date Posted: 06/Oct/2006 at 4:10pm
|
BASANTJI, BLUESTAR IS ENJOYING pe OF 27 TIMEES 07
BUT LLOYD IS AVAILABLE AT 6 TIMES FORWARD.
IS IT CORRECT TO EXPECT LLOYD TO COMMAND THE SAME PE AS BLUESTAR?
IF YES, WOULD'NT LLOYD BE A FAR BETTER BET?
|
Posted By: BubbleVision
Date Posted: 06/Oct/2006 at 4:22pm
|
Kulman Here you go -- http://www.lloydengg.com/ - http://www.lloydengg.com/ ------------- You can't make money if you are unwilling to lose...It's like willing to breathe in but not willing to breathe out. -- ED SEYKOTA ....Read Disclaimer! |
Posted By: basant
Date Posted: 06/Oct/2006 at 5:56pm
|
This is more interesting. it tells us whom Lloyd electric is supplying to:
http://www.lloydengg.com/customers.htm - http://www.lloydengg.com/customers.htm ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: nav_1996
Date Posted: 06/Oct/2006 at 7:14pm
| Blue Star is dominant solution provider and Llyod is a contract manufacturer so Blue star will definitely enjoy far superior PE. |
Posted By: basant
Date Posted: 06/Oct/2006 at 7:23pm
|
Yes i would agree to that the PE difference would remain also http://www.theequitydesk.com/forum/forum_posts.asp?TID=451 - Blue Star is like a brand and Lloyd is more of a commodity business. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: sun_1313
Date Posted: 06/Oct/2006 at 11:01pm
|
thanks,
i thought of entering lloyd, but im confused now...anyway, there are other scrpis, will look at them
reagrds all those who replied my qn.
thanks basantji
|
Posted By: chic_1978
Date Posted: 09/Oct/2006 at 2:20pm
|
Alas !!!!! Lloyd Electric hits upper circuit today ...............
Happy investing & tnxs to Basantjee ------------- happy & wise investing |
Posted By: RAKESH
Date Posted: 09/Oct/2006 at 8:15pm
|
hello sir
do u have any idea on fedders lloyd its in the same buisness
|
Posted By: basant
Date Posted: 09/Oct/2006 at 8:51pm
|
No idea on Feeder Lloyd. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: kulman
Date Posted: 10/Oct/2006 at 8:34am
|
Lloyd Electric & Engineering Ltd is likely to benefit from this tie-up also: It has entered into a MOU with Air International Transit Pty Ltd (AITPL), an Australian based Company, for the designing, manufacturing and supplying of AC package units to Metro Rail Corporation in India.
The Company, namely Air International transit is the original equipment supplier of AC package units to Rotem, who supplies coaches to Delhi Metro Rail Corporation. Apart from other businesses Air International specializes in designing and manufacture of packaged Air Conditioners to various Railways Globally including Delhi Metro Rail Corporation. As per the terms and conditions of the said MOU, technical and designing specification shall be carried out by the Australian based Company, namely Air International Transit Pty Ltd and execution of manufacturing of these ACs shall, be carried out by the Lloyd. ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: sun_1313
Date Posted: 28/Oct/2006 at 8:20am
|
Q2 is better than Q1 basantji.
your comments?
|
Posted By: basant
Date Posted: 28/Oct/2006 at 11:16am
|
Q2 results are not yet out but yes they should be better. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: sun_1313
Date Posted: 29/Oct/2006 at 10:23pm
|
sorry sir,
it was a wrong post on my part basantji.
very sorry,
regards,
sun
|
Posted By: sun_1313
Date Posted: 30/Oct/2006 at 3:05pm
|
basantji, here are the Q2 numbers
Net Sales 1069.94 Other Income 15.74 Total Income 1085.68 Expenditure -948.03 Operating Profit 137.65 Interest -11.15 Gross Profit 126.5 Depreciation -19.5 - Profit before Tax 107 Tax -8.56 - Profit after Tax 98.44 Net Profit 98.44 Equity Capital 270.03 EPS 3.65 there is a dip in EPS compared to Q1.
your view now?
regards,
sun
|
Posted By: tyler_durden
Date Posted: 30/Oct/2006 at 3:21pm
| it has shown tremendous growth in bottom line. the question is whether it can sustain the growth? |
Posted By: arnab1971
Date Posted: 08/Nov/2006 at 9:12am
|
Question to Basant : What could be the reason for that the stock has been underperforming in the supercharged market ??? Even after they have posted reasonably good Q2 result, the stock has almost come down to it's GDR issue price of 125. Duestch bank also have taken complete exit this week, though Goldman have been continously increasing it's share over past few months.
|
Posted By: basant
Date Posted: 08/Nov/2006 at 9:51am
|
You make a good point but I do not have any reasonable answers except that if the fundamentals are good stock prices WILL follow. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: arnab1971
Date Posted: 08/Nov/2006 at 10:12am
|
Thanks Basant for a quick reply. I do hold 2500 shares of mailto:[email protected] - Lloyd @136.5 I have good amount of conviction on it's fundamentals. Hope, this company won't disappoint me. I would wait 4 more quarters. Have u got any info on the GDR proceeds. What plans do they have to utilize this sum? they are holding balance 100 Crores deposited in foreign bank account. What did they commit while raising of this GDR money ?
|
Posted By: basant
Date Posted: 09/Nov/2006 at 12:25pm
|
As far as I know they are on a capacity expansion spree. Company should do really well. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: arnab1971
Date Posted: 09/Nov/2006 at 12:42pm
|
Thanks for the reply ! In fact I would like to share the story of Amara Raja in this regard. Amara was in the similar mode for last two tears and given decent return now.
|
Posted By: sun_1313
Date Posted: 24/Nov/2006 at 6:35pm
|
Hats off to basanji for another great pick that has delivered!!
regards,
sun.
|
Posted By: basant
Date Posted: 24/Nov/2006 at 6:46pm
|
Yes, the tortoise has started moving... finally...... I think this stock has some value left at least till it reaches the double century!!! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: chic_1978
Date Posted: 22/Jan/2007 at 11:21am
|
Basantjee
Check this counter....something big is cooking up offlate.....
todays volume 7.75 lakh shares............ ------------- happy & wise investing |
Posted By: sun_1313
Date Posted: 23/Jan/2007 at 7:41pm
| Arnab sir must be smiling. He has always compared it with amararaja! |
Posted By: sanjay3
Date Posted: 23/Jan/2007 at 2:20am
|
Morgan Stanley buys 1 mn shares of Lloyd Electric & Eng
Source: IRIS (23 January 2007) At the BSE, Morgan Stanley bought 700,000 shares at Rs 172.79 a share of Lloyd Electric & Engineering ------------- |
Posted By: kulman
Date Posted: 23/Jan/2007 at 7:15am
|
Lagta hain....Morgan Stanley ke 'analysts' chupke se TED forum padhke kaam karte hain!
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 23/Jan/2007 at 8:20am
|
Lloyd Electric was one of the laggards of our forum good that it is now catching up but why would Morgan want to buy something at Rs 172 when it was available at Rs 135 for months? ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: arnab1971
Date Posted: 23/Jan/2007 at 9:23am
| We should better be interested in the fundamentals and the growth model. If one has value, it's just matter of time that others will be interested in it. Market never does injustice. It's one's conviction that pays off in long run. Anyways, I am now increased my holding in it by culling profits from quite a few counter. Happy investing. Cheers! June-Q result will give the real punch ! Even @165-170 i still think it's cheap and would guarantee real good return even from this level. Cheers |
Posted By: Bobby
Date Posted: 09/Feb/2007 at 3:01pm
|
LLoyd electric is steadily growing even in down market & has touched Rs. 190.
Basantjee can we accumulate at this price?? |
Posted By: basant
Date Posted: 09/Feb/2007 at 3:16pm
|
Basantjee can we accumulate at this price??
__________________________________________________________
It was languishing at Rs 135 for months!!! Should have bought it then.I would not suggest chasing prices unless you really know something about the company. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Rinku
Date Posted: 09/Apr/2007 at 2:24pm
|
is there any new update on this board.i want to buy this scrip?Is It still a buy? |
Posted By: Rinku
Date Posted: 09/Apr/2007 at 2:29pm
|
where would you allocate more funds to Bluestar - lloyd ele? I think more towards lloyd electric |
Posted By: basant
Date Posted: 09/Apr/2007 at 2:47pm
|
Blue Star is more focused, better managed. Lloyd is a kind of a job work business where they get to manufacture parts for the Ac manufacturers so Lloyd should always be in small quantity when compared to a stable company that is growing consistently at more then 25% for several years like Blue Star. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Rinku
Date Posted: 09/Apr/2007 at 3:05pm
| thanks for the reply |
Posted By: Rinku
Date Posted: 29/Jul/2007 at 4:36am
|
Fidelity has take 173700 shares at 197.Any news on this post guys... |
Posted By: basant
Date Posted: 29/Jul/2007 at 7:38am
|
No news except that it has finally started to move. Was amongst the first stocks we discussed at TED and it did give a lot of discomfort to the people who got in at that time.
Basically the stupendous results from the AC manufactureres should have created interest in this one. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Rinku
Date Posted: 30/Jul/2007 at 1:14pm
|
I had taken some stake after joining TED may be 3-4 months back.And its up 55% from my price.Not bad huh...... |
Posted By: kulman
Date Posted: 27/Oct/2007 at 8:50pm
|
Q2 EPS Rs. 4.54 growth of 25% YOY
H1 FY08 EPS Rs. 9.86
At Rs. 175 the PE works out to 9.30 on TTM basis.
Looks attractive on the face of it. Anyone tracking this??
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: Buffet
Date Posted: 02/Nov/2007 at 12:31pm
| Yeah. I am watching this counter closely. Looks quite good from a "financial" and "business prospects" perspective. Any idea about the competency and track record of the management? I have bought some more at 170 levels today. |
Posted By: basant
Date Posted: 03/Nov/2007 at 2:11pm
| Look at http://www.theequitydesk.com/forum/forum_posts.asp?TID=451 - |
Posted By: lionamu
Date Posted: 03/Nov/2007 at 2:27pm
|
hi sir,
I am a trader & dealer in india. I like ur tips in shares . pls send your mail_id nad i can add it to my yahoo messenger.pls add my id to your mgr and give me tips for short&long term. my id is
mailto:[email protected] - [email protected]
|
Posted By: mukesh
Date Posted: 03/Nov/2007 at 2:28pm
|
Lloyd already had Rs 104 cr cash + raised 110 cr from preferential issue. Can anyone tell what are they going to do with this money?? So much cash is also not good for atleast financial health ------------- Life gives answers in three ways-It says YES and gives waht u want. It says NO and gives u something better. It says WAIt and gives you the best |
Posted By: SORUB
Date Posted: 14/May/2008 at 11:21am
|
basantji will this company make a good buy at this level? now its trading at 122 and p/e of 6.8 ------------- K.I.S.S(keep it simple silly) is the most easy management formula i ever came across!!! but it is very hard to follow!!! |
Posted By: basant
Date Posted: 14/May/2008 at 11:44am
|
The problem is not about the stock available cheap but whether it would remain cheap because if it remains cheap shareholders wil make little money.
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: SORUB
Date Posted: 14/May/2008 at 11:54am
thanks for the fast reply basantji  ------------- K.I.S.S(keep it simple silly) is the most easy management formula i ever came across!!! but it is very hard to follow!!! |
Posted By: snehaldani
Date Posted: 15/May/2008 at 8:15pm
|
Basantji, the company has acquired a Czech company with a top line of around Rs.200 crores and a positive bottom line as a entry strategy for European market for customers.
The growth of the company in the past has been decent on both top and bottom line.
However, the share price movements have been erratic.
Do you have an opinion on why the company does not get better discounting in the market ? ------------- Snehal P.Dani |
Posted By: basant
Date Posted: 15/May/2008 at 8:41pm
|
Actually this is a commodity company has little pricing power and will be squeezed for margins by the brand owners. Problem with these companies is their dependence on cyclical raw material and their inability to raise prices. Earlier I thought that this cheap company would become dear but that does not seem to happen maybe for a reason. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Mr. V
Date Posted: 15/May/2008 at 11:03pm
|
Does anyone have the annual reports ? I couldn't find them in the website. |
Posted By: Mr. V
Date Posted: 15/May/2008 at 2:44am
|
Mcap/Sales = 0.55
Book Value ~ 1x
PE ~ 6
ROE & ROCE have been decent (16-18%) over the last 2-3 years.
Raw material prices will put pressure on margins but it should be able to pass on atleast some of the increase.
It should be able to clock 20% growth in EPS.
Between Blue Star and Lloyd, which one has the higher probability to double its stock price ? Blue Star will need to continue growing at a scorching pace, further expansion in PE looks improbable.
While Lloyd apart from decent growth in earnings also has some room for PE expansion.
I am tempted to convert my holdings in Blue Star to Lloyd.
|
Posted By: equity analyst
Date Posted: 15/May/2008 at 10:18am
|
i am holding this share for last 2 years, with avg price 166, worst performer in my portfolio after dish tv.
------------- "Markets are the places where two types of people meet up in the morning: those with experience and those with money. Towards the end of the day, they exchange their assets and go home." |
Posted By: kumardiwesh
Date Posted: 15/Jun/2008 at 12:51pm
|
Here's an investment argument for Lloyd Electric, sourced frm Business Standard: A dominant position in its business, increasing opportunities, improving margins and low valuations make Lloyd Electric an attractive bet.
There is a possibility that you are reading this column in an air conditioned room. And there is a stronger possibility that you will read this column and leave immediately for an air-conditioned office. Because summers are warmer, roads are noisier and the ambient environment is dustier. The result: even if it is raining outside, the air conditioner remains switched on; the air conditioner has extended from one to multiple rooms; if you are going on an overnight train journey in winter, you will book yourself into a ‘second AC' and if there is a option to take the road or metro, you will opt for the latter because … more comfortable. But why now? Abhi kyon? Because in the overall acquisition priority of mid-priced convenience-enhancing products (woof, mouthful of a sentence!), most of us have bought the next car, the next this and the next that and hey, what's left? Air conditioners? ‘Chalo starting ke liye ek to ley hi lete hain' types. Because an increasing number of people are spending their day light hours in air conditioned offices; fancy living a Spartan existence for the rest of your life under a mortal pankha. Because even after you put all the India shining drivers of a consumption-driven economy, rising discretionary spending, long mall queues, zero financing, plastic money, international exposure, the world's largest middle-class population and a purchasing power parity that is probably the highest in the world (if not the second), you still have an air conditioning penetration of only 1.5-2 per cent in India compared to more than 20 per cent in the developed markets; you still have India buying only two million air conditioners today compared to around 30 million in China today. Just. So, if despite this evident bullishness India suffers from one of the lowest penetration levels in the world and an annual air conditioning offtake that is nothing really worth writing to mom about, where is the opportunity? Simply in the fact that for an extended period in the late nineties and thereafter, the air conditioner market in India grew in single digits. Mom, we might have touched the inflection point; the industry is now growing at a CAGR of 25-30 per cent on significantly higher industry volumes. The implication: what the air conditioner industry reports in terms of sales in a single year today is equivalent to what it would have taken years not too long ago. Opportunity I can sense your eyebrows are rising. Where is the opportunity? Where is the pure industry proxy? Interestingly, not in any of the air conditioning brands in the country because some of the largest brands are unlisted, because the listed ones are a khichdi of various products and none of them command such a large proportion of the air conditioners market that one can buy them for their air conditioning and air conditioning prospects alone. And then there is Lloyd Electric. Manufactures evaporating and condensing coils for air conditioners (capacity 1.4 million units per annum). Assembles air conditioners (capacity 0.4 million units per annum). Provides air conditioning solutions to the railways. Complete air conditioning company. Implications: strip any air conditioner
brand in India and there is a good possibility of finding a Lloyd
Electric coil inside. The company is integrated forwards into the
manufacture of complete air conditioners, so the next time you buy a
Samsung or an Onida there is a good possibility that it would have
rolled out of a Lloyd Electric factory. The company is extended
forwards into cooling systems, so the next time you sit inside an air
conditioned metro coach in New Delhi or a train journey to somewhere
and are happy enough with the cooling to not even think about it,
credit those fellows at Lloyd Electric (LEE).
------------- "History does not tell you the probability of future financial things happening" - Warren Buffett |
Posted By: snehaldani
Date Posted: 16/Jun/2008 at 2:46pm
|
Very organised and focussed thoughts, Diweshji.
Thank You. ------------- Snehal P.Dani |
Posted By: kumardiwesh
Date Posted: 16/Jun/2008 at 2:58pm
|
Snehal ji, These r not my thoughts...article by Mudar Patherya. But I will keep the thanks  ------------- "History does not tell you the probability of future financial things happening" - Warren Buffett |
Posted By: Mohan
Date Posted: 16/Jun/2008 at 10:05pm
|
Are the promoters same as Lloyd Steel ? ------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: basant
Date Posted: 16/Jun/2008 at 10:08pm
|
No. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: kulman
Date Posted: 16/Jun/2008 at 10:13pm
 कहाँ गए वह महान लोग ? ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: dkarthick
Date Posted: 21/Jun/2008 at 11:48pm
|
Emkay Research has recommended a buy rating on Lloyd Electric with a target price of Rs 142 in its June 20, 2008 research report. "Lloyd Electric and Engineering Ltd (LEEL), the market leader http://www.moneycontrol.com/india/news/recommendations/buy-lloyd-electrictargetrs-142-emkay/23/05/343592# - "LEEL is planning to invest Rs 200-300 mn per annum for the next three years in order to expand its production capacity. Given the strong growth prospects for LEEL, we expect the standalone revenues, EBITDA and PAT to grow at a CAGR of 27%, 30% and 33.2% respectively during FY08A- 10E. At the CMP of Rs 98, the scrip trades at 4.5xFY09E and 3.3xFY10E earnings respectively, which is at a discount to its peers. We initiate coverage on the stock with a BUY rating and a price target of Rs 142." - Emkay Research report. |
Posted By: basant
Date Posted: 21/Jun/2008 at 12:19pm
|
This is a commoditized business and will trade cheaply. Makes sense to look at the ac manufacturers rather then this one. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Vivek Sukhani
Date Posted: 21/Jun/2008 at 10:15am
Basant Sir, i believe most of the white goods have become commodities except something like a handycam, Plasma LCDs etc. And there MNCs are totally dominating with Indian players totally missing. Wherever Indian players have come, that white good becomes a commodity......
|
Posted By: kumardiwesh
Date Posted: 26/Jul/2008 at 7:52pm
|
Lloyd Electric acquired Luvata, a company in Czechoslovakia.
Luvata holds a significant portion of the European market.
The company expects a bottomline of Rs 80 crore to Rs 85 crore for FY08-09. ------------- "History does not tell you the probability of future financial things happening" - Warren Buffett |
Posted By: master
Date Posted: 16/Aug/2008 at 7:04pm
|
Positives
1. Commoditised, Low pricing power 2. Not much info on management team 3. Investors stuck at higher levels (130-150 range) At current valuation, looks ok to initiate a position. Any views... ------------- Someone’s sitting in shade today because someone planted a tree long time ago. |
Posted By: purayil
Date Posted: 05/Sep/2008 at 5:48am
|
I am new to the group. Is it suitable to enter Loyd engineering at current level.How is the future of the company |
Posted By: basant
Date Posted: 05/Sep/2008 at 8:55am
|
Commoditized company will remain cheap better to look at the OEMs. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: master
Date Posted: 05/Sep/2008 at 9:48am
|
I understand market treats Lloyd electric under consumer durables segment (not under Engineering or Electric equipment segments where average industry PE is far higher). The former segment does not command high valuations given its commoditised nature & low pricing power. Industry average PE for this segment is around 10 which is led by brand leaders like Bajaj electrical & Whirlpool. So can't expect Lloyd to get higher valuations in near future despite its good fundamentals. Besides Q1-09 was flat. Incidentally, cnbc awaaz, has today covered it as a value pick .
------------- Someone’s sitting in shade today because someone planted a tree long time ago. |
Posted By: basant
Date Posted: 05/Sep/2008 at 9:58am
|
Investors make money in value (cheap) stocks when they do not remain value. What are the triggers for Lloyd not remaining a value stock.
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: master
Date Posted: 05/Sep/2008 at 10:22am
|
My 2 cents ... .
1. Market leadership position in its segment.
2. Moving up the value chain going into contract manufacturing of ACs, as against a mere parts supplier so far.
3. Also moving into commercial refrigeration space by European acquisition of Luvata.
4. FY09 estimates indicate healthy growth : 50% in topline and around 40% in EPS. Analysts expect turnover of Rs 1000 crore for FY09.
5. Large scale of opportunity.
Disclosure - Except for above 2 cents, i hv no position in the stock.
------------- Someone’s sitting in shade today because someone planted a tree long time ago. |
Posted By: kumardiwesh
Date Posted: 06/Sep/2008 at 10:26pm
|
Well, Lloyd will remain cheap.
But how cheap is the question? The guidance for 2008-09 is a bottom line of Rs 80-85 cr. Let's take it as Rs 80 cr, at the lower end. So EPS for FY09 should be 25.81, assuming no dilution. Equity will be diluted to Rs 36.2 cr, but this will happen in 2009-10. Let's factor it into FY09's EPS. Assuming equity dilution, EPS for 2008-09 will be 22.1. This is still a growth of 13.5%, assuming all possible downsides to EPS. The stock is trading at a PE of less than 4. PEG ratio would still be very low at around 0.3. Or am I missing something? Is it that the market is more likely to reward companies that post higher EPS growth even if they trade at high valuation? Lloyd is an out-and-out value stock at this point of time. ------------- "History does not tell you the probability of future financial things happening" - Warren Buffett |
Posted By: basant
Date Posted: 06/Sep/2008 at 11:02pm
|
that is really cheap but being linked to the commodity cycle since its input is cyclical one can assume some pe expansion but nothing dramatic. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: striker_rage
Date Posted: 16/Jan/2009 at 6:00pm
Can we assume a 15% CAGR of eps, taking into account that the eps of 2009 will be half of 2008's eps? I wanna hold Lloyd electricals for atleast 10 years. Regards, striker |
Posted By: Vivek Sukhani
Date Posted: 16/Jan/2009 at 7:00pm
|
This company looks unbelievably cheap......
However, when things look too good to be true, it becomes all the more important to do even more stringent checks.
by the way, does this lloyd company have any connection with lloyd steel. Asking because, i have no clue on this company.... ------------- Jai Guru!!! |
Posted By: Mr. V
Date Posted: 16/Jan/2009 at 7:51pm
|
No connection with Lloyd Steel. It is part of Fedders Lloyd. |
Posted By: striker_rage
Date Posted: 16/Jan/2009 at 9:12am
|
Lloyd touched a P/E of 14 in this bull market so a P/E of 7 can be taken as a conservative number in the next bull run.
The uncertainty in the demand in the market for ac's for the coming 1-2 years might be a problem since it's difficult to take any estimation of sales or margins. Is it safe to assume that Lloyd electricals can grow at an EPS of 15% CAGR? Plz provide your insights on this. Regards, striker |
Posted By: basant
Date Posted: 16/Jan/2009 at 9:27am
|
Better to stick with the likes of Blue Star and Voltas rather then Lloyd. EVerything is cheap in this market and hence it is better to stick with companies high up in the sector.
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: nav_1996
Date Posted: 16/Jan/2009 at 11:03am
| I see no competitive advantage for a industrial/white good product manufacturer which is essentially a commodity. Neither do they have a strong brand not a solution positioning like Voltas or Blue Star. I am sure we can find much cheaper companies in this market. |
Posted By: Vivek Sukhani
Date Posted: 18/Jan/2009 at 6:37pm
|
If it is earning so much, why doesnt it pay any dividend?????
This company is now trading at less than a tenth of its turnover. If I were looking to buy cheap companies, I would rather get into a Finolex or a Garden Silk than a company which doesnt have the courage to give the dividend after 'claiming' to be earning nearly 20+ coins a ticket in a year.
------------- Jai Guru!!! |
Posted By: striker_rage
Date Posted: 18/Jan/2009 at 8:35pm
I thought the company is paying dividend, though it slashed its dividend from 2rs to 1rs in 2008 or am i mistaken? Regards, striker |
Posted By: Vivek Sukhani
Date Posted: 18/Jan/2009 at 9:21pm
|
At least the notes to the financial results for the company for the year ended 31.03.2008 on the BSE web site doesnt give any indication ------------- Jai Guru!!! |